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1. Complete the table below (2 pts per column: Total 6 p13} Lawnmowers Tractors (Y1) (Y2) AY1 135 125 8 L9 gees 110 I 2.
1. Complete the table below (2 pts per column: Total 6 p13} Lawnmowers Tractors (Y1) (Y2) AY1 135 125 8 L9 gees 110 I 2. Assume that the price per tractor is $50,000 per unit and the price per lawnmower is $1250 per unit. What is the slope of the isorevenue line? {1 pts.) 3. What is the decision rule used to determine the optimal output combination? (1 pt.) 4. The optimal output combination occurs when moving to the combination of (2 pts.) tractors and lawnmowers. 5. If the price of lawnmowers decreases to $1000 per unit, the new optimal output combination occurs when moving to_ _tractors and_ lawnmowers. (2 pts.) 6. To find the revenue-maximizing combination of outputs, a firm will reach the highest isorevenue line possible by locating at the tangency between the and the . (2 pts.) Define the following terms: 7. Production Possibilities Frontier: (2 pts.) 8. Marginal Rate of Product Substitution: (2 pts.) 9. Isorevenue Line: (2 pts.)
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